Correlation Between Charles Schwab and CITIGROUP
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By analyzing existing cross correlation between Charles Schwab Corp and CITIGROUP INC 43, you can compare the effects of market volatilities on Charles Schwab and CITIGROUP and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Charles Schwab with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charles Schwab and CITIGROUP.
Diversification Opportunities for Charles Schwab and CITIGROUP
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Charles and CITIGROUP is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Charles Schwab Corp and CITIGROUP INC 43 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 43 and Charles Schwab is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Charles Schwab Corp are associated (or correlated) with CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 43 has no effect on the direction of Charles Schwab i.e., Charles Schwab and CITIGROUP go up and down completely randomly.
Pair Corralation between Charles Schwab and CITIGROUP
Given the investment horizon of 90 days Charles Schwab Corp is expected to generate 1.53 times more return on investment than CITIGROUP. However, Charles Schwab is 1.53 times more volatile than CITIGROUP INC 43. It trades about 0.32 of its potential returns per unit of risk. CITIGROUP INC 43 is currently generating about -0.17 per unit of risk. If you would invest 7,179 in Charles Schwab Corp on August 28, 2024 and sell it today you would earn a total of 1,046 from holding Charles Schwab Corp or generate 14.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Charles Schwab Corp vs. CITIGROUP INC 43
Performance |
| Timeline |
| Charles Schwab Corp |
| CITIGROUP INC 43 |
Charles Schwab and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charles Schwab and CITIGROUP
The main advantage of trading using opposite Charles Schwab and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charles Schwab position performs unexpectedly, CITIGROUP can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CITIGROUP will offset losses from the drop in CITIGROUP's long position.| Charles Schwab vs. Goldman Sachs Group | Charles Schwab vs. Riot Blockchain | Charles Schwab vs. Jefferies Financial Group | Charles Schwab vs. Marathon Digital Holdings |
| CITIGROUP vs. AEP TEX INC | CITIGROUP vs. US BANK NATIONAL | CITIGROUP vs. Eat Beyond Global | CITIGROUP vs. Charles Schwab Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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